@@PointsInbound Justin I'm new on this so bear with me :). If QYLD Returns 11% monthly through dividends, doesn't that mean its a 131% return annually ? Despite if the ETF's price decays, wouldn't the 131% return outweighs its decays ?
@@bizunitclientcareunicorn2290 If it returned 130% a year I think we would all probably have massive positions and it's all anyone would ever tell you to invest in lol
Justin, you completely missed the point of QYLD. It's not a growth fund, but an alternative for people wanting a low beta income source. It far exceeds the income from utilities, not to mention the majority of other dividend choices. If QYLD is dead flat for the next 72 months, $100k becomes $200k.
QYLD fund managers sell covered calls on its holdings, which is the Nasdaq 100. Each of those contracts generates a premium, which is income for the fund. That is guaranteed. The contracts are month-long, and can't be called away early. A best case scenario is for the Nasdaq to be volatile all month, generating lots of contracts, but then ending dead flat at the end of the month. Growth is a BAD thing, because it means the contracts are called away and the fund has to repurchase the holdings. QYLD fund managers have been generating about one percent of income for its investors every month. That ~12% annual "dividend" is reliable and steady. It has underperformed the QQQ over the recent decade-long bull run, but the attraction to QYLD is the steady monthly income. And compared to income from REITs, QYLD creates a far better tax event. REIT dividends are non-qualified and taxed as regular income. QYLD "dividends" are actual "return of capital", that have NO tax event. Each month, the fund is simply returning some of your capital investment. Your cost basis is therefore lowered each month, so theoretically you have about a decade before it hits zero and then disbursements would be taxed as capital gains.
@@craigchittum385 Holding QYLD in a Roth is fine and causes no issues, but it wastes a huge benefit. QYLD's distributions are NOT taxable events no matter where you hold them. They are "return of capital". The IRS sees this as you getting your own money back. It does lower your cost basis every month, and you'll eventual (in a ~decade) reach zero. At that point, you'll pay capital gains on distributions. Far better to stash your REITs in a ROTH, since they are taxed at regular income if exposed. Just to add: today was another one of those days that really tests your long-term investing resolve. I watched my MGK and VGT absolutely race north again, while my QYLD was dead flat. I have to remind my self of the next distribution date (4/27) is coming fast. I guess that's just how diversification works ...
@UCQWstTzDVgT2lrOen6wAm9A Yes, the distribution is what we'd call the return of capital. Same thing. Just trying to avoid the term dividend, which it is not. Short or long is a brilliant question. Funny, but the fund's inception was 12/2013, so nobody is there yet and I haven't read a definitive answer. The common sense answer it that it will be short term. If you're going very long, there are strategies best discussed with a fiduciary with regard to wash sales and the like. If you have any K1 producing MLPS, you'll be familiar as to why this all gets murky, usually to the investor's benefit. I mean, as a taxpayer you are fine and following the law, but companies in heavily lobbied industries get insane tax advantages. Global X set up their covered call ETFs with accounting teams who take advantage of every legal option and under tight SEC scrutiny. They're the 12th largest ETF producer out if 166 in the US, so they aren't sketchy.
@enigmatic edd93 BlackRock has made a lot of investors wealthy with their CEFs. Vastly wealthy. As have other top CEFs. And who cares about expense ratios and management fees when you're getting a 60% CAGR? :) The only problem has been finding decent dips over the last couple years. Compare what Morningstar has said about Cathie Wood and all her inexperienced researchers at the ARK ETFs, then take a look at BlackRock's CEF teams. So, yes. A total fan.
If you just bought the S&P youd have a slightly higher return....ON PAPER. The difference is with QYLD you have the return IN YOUR POCKET. I love having a small portion of my portfolio (2-3%) in this etf because it constanlty cashes in some profits for you as income.
Agree 100%, you don’t have to sell QYLD also to realize the gain. You can keep your money invested and still realize another pay day the next month when it pays out.
Also once you get the income in your pocket you can spend it on things u need now...not when you 89 and in a nursing home...Like JG WENTHWORTH put it....I need my cash Now....................1-800 need cash now...QYLD...!!!!!!!
I don’t think the stock is designed to give great returns. It’s meant to give investors a “2nd income source” so that they can fund their portfolio from not only their monthly contributions but also from the dividends received from QYLD.
This is not an income ETF. It just gives off monthly distributions. This is the equivalent of buying a Toyota Camry that has the reliability of a Ferrari. You have all of the downside of a Ferrari maintenance with none of the upside. That is ETF works. You are exposed to growth stocks so growth stocks go down you go down but if they go up you don't get that. So you think that you have a Toyota Camry but you actually have a gas guzzler and don't even understand it because you don't understand the product that you are using. Because you only understand the bare minimum basics of how this works, you don't understand that you are exposed to growth stock but the way you are getting the dividend is by saying that you will not get any of the upside of growth and sell a covered call to receive money today.
QYLD IS GREAT. Take it as a deposit in a bank, giving you 11% annual income, but paid each month and monthly payments are growing. What else you want. Instead of idling my money in bank and risking on vagaries of market, I prefer QYLD as a great second monthly salary for me. Most important feature is its stable price and any time, one can get out. But this is kind of fund, i wish to pass it on to the next generation, with steady monthly income. Once, invested i dont have to waste my money monitoring the investment in QYLD and focus on other things in my life. Probably, you are full time trader and have all the time and skills to get higher yield, that is good. But that does not make QYLD a bad investment (may be for you, who can generate more profit) but for 90% of people who wish peace of mind and steady income and stable portfolio QYLD IS THE BEST.
Have to disagree too. QYLD is not about price appreciation, it's about dividends and passive income generation. If you are just focused on appreciation then QYLD is NOT FOR YOU. However, if you're trying to create a passive monthly cash flow then this DEFINITELY IS FOR YOU. Know your investing strategy and what the fund is actually meant for before going around knocking it for not doing what it wasn't designed to do. I'm holding in my IRA and gonna let it compound until I can start drawing and by then it will be generating about $8k in monthly dividends. Be a nice boost to whatever else I'm making then. That's the plan anyway.
Yea I understand it is for income now, but even with its income reinvested it has underperformed the sp500 since its inception. Sure you can get a big yield but it's not great for compounding wealth.
@@PointsInbound Just do both. Invest in good paying dividend ETFs and stocks like QYLD for future passive income and growth stocks for the future appreciation. Run a dividend growth calculator for QYLD and see what it shows you. Wishing I knew this 20 years ago, even though QYLD hasn't been around that long, but could have built a good passive income from dividends by now. Just for total disclosure, I'm doing both, but no day trading or options. Thanks for the reply. 😊✌
A 1099 is the only tax form for the individual owner of the etf shares. Global X deals with the complicated tax crap, not you. Good video, just wanted to point that out.
Almost all the comments are wrong. It just shows that dividend investors are not good investors. It's because people don't understand how this works so they are so caught up in getting a passive income that they don't understand that that is not the only way to retire from a portfolio of stocks. It's just the simplest for a average person to understand. You should always look at the total return and not the yield being thrown off. It's the mistake the majority of average investors make which is why people don't do well in the stock market
@@Tential1 can you suggest something else to look at in place of qyld? I have plenty of growth stocks. Looking for some safety to diversify a portion of my portfolion.
Part of the reason I like QYLD is because a portion of it is Return on Capital, so I don't have to pay taxes on that. In addition, The constant dividend could be invested into other stocks or DRIP. For example, a recent RoC was .14, if they were in a bad spot you would expect the stock to drop by .14 every month, that is about $1.50 a year, however, NAV hasn't seen that type of reduction. Given the fund started 8 years ago that would mean it would be dry.
@@szaky7399 drip is when you reinvest the dividend you receive back into the stock to get more stocks to increase your total dividend. For example lets say you buy 5 qyld for $100 at $20 each. They give you .20 dividends monthly (12% yield annually 1% monthly). That means you get $1 a month. So if you take that $1 and invest back into qyld you will now get an extra 12% off that dollar annually. So thats an extra penny per month. While this may not seem like a lot it scales up. Lets say you have $100k in. At $20 a share thats 1000 monthly in dividends (same 12% annual yield). If you buy $1000 worth of the stock again you get an extra $10 per month. So now you have $1010 dollars in monthly income. Do this next month its $1020 and so on. Keep in mind it grows exponentially since you are investing the addition $10 or $20 again that basically it can grow really fast. I have a small YT Channe as well if you want to come check it out. Cover different types of stock and some Crypto
QYLD is great for a retiree getting that nearly 12% income, paid out monthly. You are VERY short sighted. QYLG gives more growth. A retired person wants preservation of capital and income.
So I guess QYLD would be perfect for me right ? Im New to stocks. I don’t have time to do Option(QYLD does it for me,right?) Im using robinhood as My broker since they have the DRIP option. That dividend money I gain will be put automatically put back into QYLD.? I plan on Investing 50$ every week into this. And I’m only 25years old. Hoping that when I’m 35years old, I made a good choice.
Inside of a Roth IRA, QYLD becomes a nice tax free income engine. Because the price doesn’t move much when the market is down, (beta=0.65) one can feel safe parking a lot of money in it. $100K will return the magical $1K/month to supplement your income (assuming the 10% return). $500K in QYLD, gets you a $50K annual salary, again tax free. Then repeat.
@@jeffreyrapp3493 I am not a financial advisor and everyone’s situation is different, as such one person’s investment strategy may not suit another. I can only speak from my experiences. I like QYLD or any dividend paying investment in my retirement account, (Roth & Traditional IRA), for the tax advantages. Because of the limited capital appreciation, but healthy dividend, QYLD functions like a high yield bond with a reliable dividend yield. I have heard of some who make this their whole portfolio and I will say I did at one point as well. I changed my strategy, however, to introduce index funds. Because the amount of money one can contribute to say an IRA in a year is limited I use the income to fund capital appreciating index funds that also pay some kind of dividend. My choices are SPYD and SCHD. SPYD has a dividend of 4.43% annual and SCHD is at 2.81%. Both pale in comparison to QYLD in terms of the dividend but have great YTD returns from capital appreciation, (SPYD 26% YTD and SCHD 21%). QYLD’s price return so far is -1.27%.
@@tiffanystyle2512 Hi there. With never having to pay taxes on the dividends this is a great fit inside a Roth IRA. It’s in mine, I am long QYLD. I don’t expect fantastic capital appreciation from it, I have something else for that, but I can rely on the 11% dividend.
@@Cthames123 are SPYD and SCHD your main focus for capital appreciation or do you have others. Someone pointed out that BSTZ was good for growth (although it's down right now), plus it has a solid monthly dividend at .17. Are you familiar?
Great Vid. In general, ATM monthly covered calls underperform the market during a bull run (like you said), but they really shine when the market is trending sideways or trending down. I think time will show this product to be a great hedge to the downside once we enter a prolonged bear market. It’s not designed for hyper growth like the QQQ’s. Good points with the taxes!
Agreed. Although, In prolonged bear I think it will only marginally perform better. But it will definitely a great instrument to hide out or even now I view it as sort of a cash proxy for some idle cash.
It’s a great hedge against a bear market. We’ve had a 20 year bull market. Stocks can’t go up forever (stonks were flat during the 70s, sp500 PE is 70% above historical avg). I dunno. With inflation already here, feds will prolly raise rates which will slow growth etf like qqq
My investment strategy is composed of equities I own for their capital gain performance, which comes with higher risk, AND high dividend payers. I own QYLD for the 11%/yr dividend monthly cash payout every month with no volatility. I’m not looking for QYLD to return fantastic capital appreciation; I have something else for that. Further, Morning star, Lipper & CFRA all give it 5 stars. CFRA rates it at 93/100 for Reward and 99/100 for risk, (higher scores more favorable).
You made some great points in this video. I do hold some QYLD shares in my Roth so I’m biased. I know that the sp500 returns more than QYLD in the long run in accumulation, but what if you reinvest the dividends into more shares. Wouldn’t that compound more over time?
Help me understand your logic. So in 8yrs it’s dropped 11% but paying out 9-12% in dividends annually. If you’re bearish on the market, seems a great way to hedge your bets.
You dont have any real reason to dislike it. Nobody knows what s@p is going to do. It could tank back to 19 k...But with these covered call etfs the older people they need reliable income and cant wait 0 to 10 years for a bear market to correct this is a great alternative and as a guide in the stocks and etfs why are you making a negative video when you havent considered this
Selling covered calls earns you premium, but you limit your gain if the underlying goes up above the strike price. Since QYLD sells at the money covered calls, it will never earn anything from the gain of QQQ, only the covered call premium. Which is ok if you had an underlying that stays the same, or goes down slightly. But since QQQ has been on a tear going up for the past number of years this is a poor strategy to make money. I agree with you Justin that if they would sell maybe a 30 delta covered call, at least they would sometimes make money from the price appreciation of QQQ in addition to the covered call premium.
I think you may only be looking at it from a pure price appreciate standpoint. If you look at it from a compound interest point of view, you could amass large amounts of money despite what the price action does. If one were to invest $500 a month for 30 years, with starting balance of $0, assuming 10%, compounding monthly, which it clearly is, one would accumulate 1.13M. This obviously doesn't count taxes, however, it looks to be a much safer play with today's over priced market being so risky. Also, volatility in QYLD is way lower than stocks. You could easily wake up one morning and be down 30% by investing in the Q's at this price.
That's true but you would probably have more money investing the sp500 for the same time. Even with its income, qyld does not outperform sp500 or at least it hasn't since inception.
@@PointsInbound how you really should have explained this, is that you still are exposed to growth stocks, this isn't a dividend stock, it's a growth stock that gives off income. So you have all of the downside of a growth stock with none of the upside.
I think we all got what you are saying but you know that why we diversify. So is ok to own some of QYLD or RYLD. By the way what do you think about (O) ?
So if it went down 11% over 5 years and you get 11% dividend yield annually (maybe 12-13% if you set up a DRIP) wouldn’t you still be making 30-45% gain over that 5 years. Plus there would be a snowball effects for your dividend reinvestment? So even if it’s going down you profit?
Yea you will profit, but not as much as you think. Since inception it has an average total return of about 9%. Its not bad at all but people see the yield and bet on that but the whole time the share price is creeping down.
@@PointsInbound very true considering I am a long term DRIP investor I think this stock is a good pick for me but not for everyone especially if you just are cashing out the dividends
@@josephpeir9966 once you have 20$ or up per month thats when you should put that money to other stocks thats what im doing, or if you need the money now then use it :)
I have owned QYLD for almost a year and getting 10 - 12% dividends, monthly, without skipping a beat during Chinavirus. It's great for dividend investors, probably not the best for growth. Great part of a well diversified dividend/income portfolio. I disagree completely with the author and I wish he would categorize his opinion for the type of investment goal his opinion is based on.
Making a comparison to the S&P with this product isn’t a viable argument. This is an incredible tool for retirement income, not designed for capital growth. Good video with stats though!
I use it as a savings account. I just place a stop loss at the level I am comfortable with for preservation of capital in case something really bad happens suddenly.
How about QYLG. Half the growth of QQQ, plus 6% yield in monthly distributions. Since you get half QQQ growth, plus the dividend, you probably are more protected during downturns in the market, while not being left behind too much during times QQQ is bulling higher. Also, the analysis should be a 20 year annualized return comparison. Supposing you invest in the IVV [S&P500], you'd only get around 6.5% annualized growth, so QYLD if netting 10% annual over the same 20 year would have vastly outperformed the S&P500, even with 0% asset price appreciation in QYLD [dividends would need to be reinvested]. If you consider tax as a negative, people might be investing with a ROTH IRA, which doesn't have a tax burden on the distributions.
Its an awesome ETF, but not one you want to invest all your money into. Add 10% of it to your portfolio and invest in other companies you know well and believe in.
Dividend reinvestment etf is better when it maintains price so the reinvestment can maximize, unless you got a f*** ton of money it's different, 10k invested for 10 years can give a generous return compared to most. Problem isn't the growth but how the tax works, but there's always a work around. If you know how to work it, it's good regardless of age.
I really liked that you included tax information. I had watched several videos and they just talked about yield and what the eft was. You gave more info. Thanks
I like the opposing opinions you’ve made compared to other videos praising QYLD, BUT....I just want to say that green light in the background is pretty fucking cool 🤣
Most important ist at what price you get it. I sold CSP on it an got it cheap, so now I continue to earn on both sides: dividends and commission on CSP. If you think you can get better performance on other deals, fine. Just then maybe this ETF is simply not for you. Just if it would be in future, maybe think about building a position other than with buying in directly.
Yes I think so. Tasty trade talks about 30 delta is the safest and qyld sells atm. But I think that you should not sell cc's on stocks you want hold for a long time.
A little shortsighted on the one size fits all approach. This fund is great along with other dividend ETFs like SCHD and NOBL for those seeking dividend income instead or growth, like a retiree
No I don't think so. First the share price tends to drop over time and then if volatility drops you won't be getting the 11%. It can keep paying out high yield but I don't think is is safe or reliable as people say.
Do QYLD still pays dividends to this day? I was doing research and i haven't seen a payout date since jan, 7, 2021....someone please reply with an accurate answer
I don’t think u really understand how etf’s work. Please go review before bs-ing on UA-cam lol. I guess when you don’t understand something it sounds complicated. There is a AP behind every transaction on buying and selling shares/cc. The price has of QYLD has to do with how much the demand for the NASDAQ is. Not how much QYLD is demanded. If demand of QYLD is high the ap will just buy more nasdaq and issue more QYLD shares to offset the imbalanced price and vise versa.
BOA expects 0% growth over next 10 years just announced. This is great for qyld because they it will outperform your growth etfs. People should take into consideration what the banks forecast like you u tubers
The hilarious thing is that you are absolutely correct but got so many down votes. People are so obsessed with dividends that they will literally take away capital appreciation. You could have explained it better or charted it better to show people but I mean if people can't figure this out they deserve what they get. This is why people underperform, basic math is hard for them
The hilarious thing is you are absolutely blind! Every investor has their own goals. Not every investor needs capital appreciation. At some point in time, an investor may prefer to move money from “growth” to “income”. I have held TQQQ for 8 years. I’ve had incredible growth. Now, I’m ready to redirect some of that appreciation from growth to income. Sure, I’ll keep some TQQQ. Most of it, actually. But, moving some from TQQQ to QYLD lets me stabilize my portfolio (ie. not “lose” it!) as well as enjoy some income. Is QYLD a good way to grow a portfolio? It’s not “bad” but there are better ways. Is it a good way to fund a retirement? ABSOLUTELY!!!
@@adairmartin make what ever mistake you want. If you think you know how qyld works great. I LOVE qyld. It alows me to make more money than I should because people don't know how it works. So please, buy qyld. I DEPEND on people like you to create incredible growth for clients. Please, go buy qyld. Like I said, you don't understand how it works? Great, you DESERVE WHAT YOU GET. Finance and trading is meant to move money to the smartest hands. It depends on people making mistakes and being intellectually stupid. So thanks.
@@Tential1 what makes you think I don’t know how it works? The fund buys all the stocks in the Index. About 100 positions. It then sells at the money calls on the QQQ index that expire at the end of the month. These calls are cash settled. If the market is flat or down, the fund gets to keep the premium. If the market is up, the fund has to pay some to cover the call. On average, the fund has been generating about 1% per month. Over the past 7 years, the NAV of the fund has dropped from about $25/unit to about $22.50. That’s a 10% decline. Over 7 years. It’s unfortunate, but what can you do. The market has been up! To offset that, it’s good to hold some growth stocks or ETFs that can be added to the QYLD position to maintain the cash flow, Alternatively, some of the dividends of QYLD can be reinvested to offset the long term NAV decline. I’m not sure I understand how my investing in QYLD makes YOU any money. Please let me know how that works! And, for what it’s worth, I’m hardly a stupid investor. I’m 67 and retired 20 years ago, living on my passive investments. I am NOT a registered investment advisor, just an ordinary guy who has been investing in stocks since I was in college.
@@adairmartin that's a no then. Hence why I love this game. It's so complex, and people can regurgitate only the basics. Enjoy your game play. If you're happy, I'm happy. Not in my best interest to explain to you. This is a game, and the best way to get people to use qyld is to tell them not to. People are dumb. I can tell you this, and you'll still double down on you being right. You'll tell your friends hopefully about qyld being good. And that, will make me happy.
@@Tential1, I don’t understand your post at all. You’re playing some kind of mind games??? Do you do this with clients? You imply you are a financial advisor. If this is the way you treat them, I’m amazed they stay with you. I prefer to keep it simple: use growth stocks Or ETF’s to grow the portfolio. At such time the portfolio has grown, use dividend stocks and/or ETFs for passive income.
Hello everyone, I have posted a question over here but for some reason its not showing. Thereby asking again: i saw a couple of youtube vide and reviews of QYLD and everyone just stating that this is not a good stock as the growth is not a sure shot. I am not an expert neither i have experience in investment but I believe in this group there are many seasoned players who have done so much in investment. my question is i have invested a fair amount of money on this for monthly income along with a mindset to invest that monthly income in an Index fund on a monthly basis. Am I on the right track? kindly share if you have any more thoughts on this.
I disagree. QYLD is great for investors who don't have time to be doing covered calls. Im happy with my 100 shares.
Thank you for politely disagreeing, somebody else called me a bunch of names for not liking his qyld lol.
@@PointsInbound Anytime! :)
@@PointsInbound Justin I'm new on this so bear with me :). If QYLD Returns 11% monthly through dividends, doesn't that mean its a 131% return annually ? Despite if the ETF's price decays, wouldn't the 131% return outweighs its decays ?
@@bizunitclientcareunicorn2290 it would be 11% a year.
@@bizunitclientcareunicorn2290 If it returned 130% a year I think we would all probably have massive positions and it's all anyone would ever tell you to invest in lol
Qyld is good income for retirees, I put 100k in it and I got almost 1k a month for my retirement income😄😄😄
For what period already?
Hmmm not bad
@@disguisewhat5452 QYLD has posted pretty stable monthly dividends for about 6 years now
nice !!!!!!!!!!!!!!!!
Bro Qyld isn’t for growth. It is for income and low volatility. I own it and it’s dripping shares every month.
So you get shares every month and not $? Where can i get that?
@@cristobalnazar629 I set my broker to reinvest the monthly distributions. DRIP = dividend reinvestment program.
@@dougtyus1789 Hi Doug Tyus
Which Broker do you use that allows you to reinvest the monthly distributions?
@@faithious1132 Schwab
i want income so i can retire at 40
Justin, you completely missed the point of QYLD. It's not a growth fund, but an alternative for people wanting a low beta income source. It far exceeds the income from utilities, not to mention the majority of other dividend choices. If QYLD is dead flat for the next 72 months, $100k becomes $200k.
QYLD fund managers sell covered calls on its holdings, which is the Nasdaq 100. Each of those contracts generates a premium, which is income for the fund. That is guaranteed. The contracts are month-long, and can't be called away early. A best case scenario is for the Nasdaq to be volatile all month, generating lots of contracts, but then ending dead flat at the end of the month. Growth is a BAD thing, because it means the contracts are called away and the fund has to repurchase the holdings. QYLD fund managers have been generating about one percent of income for its investors every month. That ~12% annual "dividend" is reliable and steady. It has underperformed the QQQ over the recent decade-long bull run, but the attraction to QYLD is the steady monthly income. And compared to income from REITs, QYLD creates a far better tax event. REIT dividends are non-qualified and taxed as regular income. QYLD "dividends" are actual "return of capital", that have NO tax event. Each month, the fund is simply returning some of your capital investment. Your cost basis is therefore lowered each month, so theoretically you have about a decade before it hits zero and then disbursements would be taxed as capital gains.
@@ski999 Thank you for the info!
@@craigchittum385 Holding QYLD in a Roth is fine and causes no issues, but it wastes a huge benefit. QYLD's distributions are NOT taxable events no matter where you hold them. They are "return of capital". The IRS sees this as you getting your own money back. It does lower your cost basis every month, and you'll eventual (in a ~decade) reach zero. At that point, you'll pay capital gains on distributions. Far better to stash your REITs in a ROTH, since they are taxed at regular income if exposed.
Just to add: today was another one of those days that really tests your long-term investing resolve. I watched my MGK and VGT absolutely race north again, while my QYLD was dead flat. I have to remind my self of the next distribution date (4/27) is coming fast. I guess that's just how diversification works ...
@UCQWstTzDVgT2lrOen6wAm9A Yes, the distribution is what we'd call the return of capital. Same thing. Just trying to avoid the term dividend, which it is not. Short or long is a brilliant question. Funny, but the fund's inception was 12/2013, so nobody is there yet and I haven't read a definitive answer. The common sense answer it that it will be short term. If you're going very long, there are strategies best discussed with a fiduciary with regard to wash sales and the like. If you have any K1 producing MLPS, you'll be familiar as to why this all gets murky, usually to the investor's benefit. I mean, as a taxpayer you are fine and following the law, but companies in heavily lobbied industries get insane tax advantages. Global X set up their covered call ETFs with accounting teams who take advantage of every legal option and under tight SEC scrutiny. They're the 12th largest ETF producer out if 166 in the US, so they aren't sketchy.
@enigmatic edd93 BlackRock has made a lot of investors wealthy with their CEFs. Vastly wealthy. As have other top CEFs. And who cares about expense ratios and management fees when you're getting a 60% CAGR? :) The only problem has been finding decent dips over the last couple years. Compare what Morningstar has said about Cathie Wood and all her inexperienced researchers at the ARK ETFs, then take a look at BlackRock's CEF teams. So, yes. A total fan.
If you just bought the S&P youd have a slightly higher return....ON PAPER. The difference is with QYLD you have the return IN YOUR POCKET. I love having a small portion of my portfolio (2-3%) in this etf because it constanlty cashes in some profits for you as income.
Agree 100%, you don’t have to sell QYLD also to realize the gain. You can keep your money invested and still realize another pay day the next month when it pays out.
Also once you get the income in your pocket you can spend it on things u need now...not when you 89 and in a nursing home...Like JG WENTHWORTH put it....I need my cash Now....................1-800 need cash now...QYLD...!!!!!!!
Use those divys to buy back growth stocks slowly and forget about them. This is the way
@@sirus312 And if you're a Mandalorian, you can use divys to buy more armor. :-)
I don’t think the stock is designed to give great returns. It’s meant to give investors a “2nd income source” so that they can fund their portfolio from not only their monthly contributions but also from the dividends received from QYLD.
1000 shares is the goal
why do people rate income stocks for their growth? thats like rating a Toyota Camry on its racing capabilities when you got it for gas mileage
LOL I always use that same exact analogy. It really is apples and oranges.
My Camry could haul ass AND get good mileage. :)
Great analogy.
Even my Yaris has hauled ass when it was newer LOL But for real, this analogy is spot on. Some of us are just looking for income.
This is not an income ETF. It just gives off monthly distributions. This is the equivalent of buying a Toyota Camry that has the reliability of a Ferrari. You have all of the downside of a Ferrari maintenance with none of the upside. That is ETF works. You are exposed to growth stocks so growth stocks go down you go down but if they go up you don't get that.
So you think that you have a Toyota Camry but you actually have a gas guzzler and don't even understand it because you don't understand the product that you are using.
Because you only understand the bare minimum basics of how this works, you don't understand that you are exposed to growth stock but the way you are getting the dividend is by saying that you will not get any of the upside of growth and sell a covered call to receive money today.
It's great for income, not for growth. It all depends on your strategy.
QYLD IS GREAT. Take it as a deposit in a bank, giving you 11% annual income, but paid each month and monthly payments are growing. What else you want. Instead of idling my money in bank and risking on vagaries of market, I prefer QYLD as a great second monthly salary for me. Most important feature is its stable price and any time, one can get out. But this is kind of fund, i wish to pass it on to the next generation, with steady monthly income. Once, invested i dont have to waste my money monitoring the investment in QYLD and focus on other things in my life. Probably, you are full time trader and have all the time and skills to get higher yield, that is good. But that does not make QYLD a bad investment (may be for you, who can generate more profit) but for 90% of people who wish peace of mind and steady income and stable portfolio QYLD IS THE BEST.
Have to disagree too. QYLD is not about price appreciation, it's about dividends and passive income generation. If you are just focused on appreciation then QYLD is NOT FOR YOU. However, if you're trying to create a passive monthly cash flow then this DEFINITELY IS FOR YOU. Know your investing strategy and what the fund is actually meant for before going around knocking it for not doing what it wasn't designed to do. I'm holding in my IRA and gonna let it compound until I can start drawing and by then it will be generating about $8k in monthly dividends. Be a nice boost to whatever else I'm making then. That's the plan anyway.
Yea I understand it is for income now, but even with its income reinvested it has underperformed the sp500 since its inception. Sure you can get a big yield but it's not great for compounding wealth.
@@PointsInbound Just do both. Invest in good paying dividend ETFs and stocks like QYLD for future passive income and growth stocks for the future appreciation. Run a dividend growth calculator for QYLD and see what it shows you. Wishing I knew this 20 years ago, even though QYLD hasn't been around that long, but could have built a good passive income from dividends by now. Just for total disclosure, I'm doing both, but no day trading or options. Thanks for the reply. 😊✌
A 1099 is the only tax form for the individual owner of the etf shares. Global X deals with the complicated tax crap, not you. Good video, just wanted to point that out.
Most stable account I use is QYLD STABLE
thank god I read the comments before even watching the video lol
Almost all the comments are wrong. It just shows that dividend investors are not good investors. It's because people don't understand how this works so they are so caught up in getting a passive income that they don't understand that that is not the only way to retire from a portfolio of stocks. It's just the simplest for a average person to understand.
You should always look at the total return and not the yield being thrown off. It's the mistake the majority of average investors make which is why people don't do well in the stock market
@@Tential1 can you suggest something else to look at in place of qyld? I have plenty of growth stocks. Looking for some safety to diversify a portion of my portfolion.
Part of the reason I like QYLD is because a portion of it is Return on Capital, so I don't have to pay taxes on that. In addition, The constant dividend could be invested into other stocks or DRIP. For example, a recent RoC was .14, if they were in a bad spot you would expect the stock to drop by .14 every month, that is about $1.50 a year, however, NAV hasn't seen that type of reduction. Given the fund started 8 years ago that would mean it would be dry.
What is DRIP can you explain?
@@szaky7399 drip is when you reinvest the dividend you receive back into the stock to get more stocks to increase your total dividend.
For example lets say you buy 5 qyld for $100 at $20 each. They give you .20 dividends monthly (12% yield annually 1% monthly). That means you get $1 a month. So if you take that $1 and invest back into qyld you will now get an extra 12% off that dollar annually. So thats an extra penny per month. While this may not seem like a lot it scales up.
Lets say you have $100k in. At $20 a share thats 1000 monthly in dividends (same 12% annual yield). If you buy $1000 worth of the stock again you get an extra $10 per month. So now you have $1010 dollars in monthly income. Do this next month its $1020 and so on. Keep in mind it grows exponentially since you are investing the addition $10 or $20 again that basically it can grow really fast.
I have a small YT Channe as well if you want to come check it out. Cover different types of stock and some Crypto
@@ARandomInvestor Thanks a lot for explaining.
Qyld is for dividends, not growth. Do 5 minutes of research
QYLD is great for a retiree getting that nearly 12% income, paid out monthly. You are VERY short sighted. QYLG gives more growth. A retired person wants preservation of capital and income.
So I guess QYLD would be perfect for me right ? Im New to stocks.
I don’t have time to do Option(QYLD does it for me,right?)
Im using robinhood as My broker since they have the DRIP option.
That dividend money I gain will be put automatically put back into QYLD.?
I plan on Investing 50$ every week into this. And I’m only 25years old. Hoping that when I’m 35years old, I made a good choice.
@@thomasvaro1265 sure. With that time I would choose more growth with income like USOI or JEPI or DIVO
@@jenniferwise8515 I’ll do more research and thank you
@@thomasvaro1265 at your age growth not income QQQ or any growth etf after you accumulate wealth you can invest in income later in life
Inside of a Roth IRA, QYLD becomes a nice tax free income engine. Because the price doesn’t move much when the market is down, (beta=0.65) one can feel safe parking a lot of money in it. $100K will return the magical $1K/month to supplement your income (assuming the 10% return). $500K in QYLD, gets you a $50K annual salary, again tax free. Then repeat.
Would QYLD be a great pick for a person in their mid 30s for their entire ROTH IRA?
@cthames123 same question as below about holding in a Roth long term.
@@jeffreyrapp3493 I am not a financial advisor and everyone’s situation is different, as such one person’s investment strategy may not suit another. I can only speak from my experiences. I like QYLD or any dividend paying investment in my retirement account, (Roth & Traditional IRA), for the tax advantages.
Because of the limited capital appreciation, but healthy dividend, QYLD functions like a high yield bond with a reliable dividend yield. I have heard of some who make this their whole portfolio and I will say I did at one point as well. I changed my strategy, however, to introduce index funds. Because the amount of money one can contribute to say an IRA in a year is limited I use the income to fund capital appreciating index funds that also pay some kind of dividend. My choices are SPYD and SCHD. SPYD has a dividend of 4.43% annual and SCHD is at 2.81%. Both pale in comparison to QYLD in terms of the dividend but have great YTD returns from capital appreciation, (SPYD 26% YTD and SCHD 21%). QYLD’s price return so far is -1.27%.
@@tiffanystyle2512 Hi there. With never having to pay taxes on the dividends this is a great fit inside a Roth IRA. It’s in mine, I am long QYLD. I don’t expect fantastic capital appreciation from it, I have something else for that, but I can rely on the 11% dividend.
@@Cthames123 are SPYD and SCHD your main focus for capital appreciation or do you have others. Someone pointed out that BSTZ was good for growth (although it's down right now), plus it has a solid monthly dividend at .17. Are you familiar?
Great Vid. In general, ATM monthly covered calls underperform the market during a bull run (like you said), but they really shine when the market is trending sideways or trending down. I think time will show this product to be a great hedge to the downside once we enter a prolonged bear market. It’s not designed for hyper growth like the QQQ’s. Good points with the taxes!
Agreed. Although, In prolonged bear I think it will only marginally perform better. But it will definitely a great instrument to hide out or even now I view it as sort of a cash proxy for some idle cash.
QYLD is capping their share price for a reason. It is not a growth investment, it's a high yield investment.
It’s a great hedge against a bear market. We’ve had a 20 year bull market. Stocks can’t go up forever (stonks were flat during the 70s, sp500 PE is 70% above historical avg). I dunno. With inflation already here, feds will prolly raise rates which will slow growth etf like qqq
My investment strategy is composed of equities I own for their capital gain performance, which comes with higher risk, AND high dividend payers. I own QYLD for the 11%/yr dividend monthly cash payout every month with no volatility. I’m not looking for QYLD to return fantastic capital appreciation; I have something else for that. Further, Morning star, Lipper & CFRA all give it 5 stars. CFRA rates it at 93/100 for Reward and 99/100 for risk, (higher scores more favorable).
its a good buy for me during the dips. anytime its below 22 USD i pick some up. But I understand the point you are making. I enjoyed your video.
Thanks for watching.
You made some great points in this video. I do hold some QYLD shares in my Roth so I’m biased. I know that the sp500 returns more than QYLD in the long run in accumulation, but what if you reinvest the dividends into more shares. Wouldn’t that compound more over time?
The s&p still outperforms even if qyld is reinvested, or at least it has since qyld's inception date.
@@PointsInbound Ah okay, nothing beats the sp500 long term lol.
Help me understand your logic. So in 8yrs it’s dropped 11% but paying out 9-12% in dividends annually. If you’re bearish on the market, seems a great way to hedge your bets.
If S&P500 performs better, why not just buy VOO and sell the monthly earnings whenever I need them?
You probably should
You dont have any real reason to dislike it. Nobody knows what s@p is going to do. It could tank back to 19 k...But with these covered call etfs the older people they need reliable income and cant wait 0 to 10 years for a bear market to correct this is a great alternative and as a guide in the stocks and etfs why are you making a negative video when you havent considered this
Selling covered calls earns you premium, but you limit your gain if the underlying goes up above the strike price. Since QYLD sells at the money covered calls, it will never earn anything from the gain of QQQ, only the covered call premium. Which is ok if you had an underlying that stays the same, or goes down slightly. But since QQQ has been on a tear going up for the past number of years this is a poor strategy to make money. I agree with you Justin that if they would sell maybe a 30 delta covered call, at least they would sometimes make money from the price appreciation of QQQ in addition to the covered call premium.
I think you may only be looking at it from a pure price appreciate standpoint. If you look at it from a compound interest point of view, you could amass large amounts of money despite what the price action does. If one were to invest $500 a month for 30 years, with starting balance of $0, assuming 10%, compounding monthly, which it clearly is, one would accumulate 1.13M. This obviously doesn't count taxes, however, it looks to be a much safer play with today's over priced market being so risky. Also, volatility in QYLD is way lower than stocks. You could easily wake up one morning and be down 30% by investing in the Q's at this price.
That's true but you would probably have more money investing the sp500 for the same time. Even with its income, qyld does not outperform sp500 or at least it hasn't since inception.
how can you compare growth stock and dividend stock? if you want growth stock just invest spac or tsla
I'm showing how qyld underperforms, its price decline has to be accounted for when talking about its returns.
1) It's not a stock. It's an ETF
2) It's a covered call strategy, not dividend.
@@PointsInbound how you really should have explained this, is that you still are exposed to growth stocks, this isn't a dividend stock, it's a growth stock that gives off income. So you have all of the downside of a growth stock with none of the upside.
@@Tential1 yea that sounds like a good point
Thank you so much for your honest review and for looking at it from multiple angles.
It’s not risk free. It works best in an up market. I do own some but own more JEPI. Put it in a Roth IRA and don’t worry about taxes.
I think we all got what you are saying but you know that why we diversify. So is ok to own some of QYLD or RYLD. By the way what do you think about (O) ?
I'm a big fan, it was the first individual stock I ever bought in 2009.
If you want your upside, get QYLG, where they only do 50% of the portfolio in the strategy
So if it went down 11% over 5 years and you get 11% dividend yield annually (maybe 12-13% if you set up a DRIP) wouldn’t you still be making 30-45% gain over that 5 years. Plus there would be a snowball effects for your dividend reinvestment? So even if it’s going down you profit?
Yea you will profit, but not as much as you think. Since inception it has an average total return of about 9%. Its not bad at all but people see the yield and bet on that but the whole time the share price is creeping down.
@@PointsInbound very true considering I am a long term DRIP investor I think this stock is a good pick for me but not for everyone especially if you just are cashing out the dividends
@@josephpeir9966 once you have 20$ or up per month thats when you should put that money to other stocks thats what im doing, or if you need the money now then use it :)
Obviously there's a lot of disagreement on QYLD, but thanks for your rundown and opinions. Very informative, especially the part on tax treatment.
I have owned QYLD for almost a year and getting 10 - 12% dividends, monthly, without skipping a beat during Chinavirus. It's great for dividend investors, probably not the best for growth. Great part of a well diversified dividend/income portfolio. I disagree completely with the author and I wish he would categorize his opinion for the type of investment goal his opinion is based on.
10-12% yearly not monthly but Im sure you know that
Making a comparison to the S&P with this product isn’t a viable argument. This is an incredible tool for retirement income, not designed for capital growth. Good video with stats though!
I use it as a savings account. I just place a stop loss at the level I am comfortable with for preservation of capital in case something really bad happens suddenly.
How about QYLG. Half the growth of QQQ, plus 6% yield in monthly distributions. Since you get half QQQ growth, plus the dividend, you probably are more protected during downturns in the market, while not being left behind too much during times QQQ is bulling higher.
Also, the analysis should be a 20 year annualized return comparison. Supposing you invest in the IVV [S&P500], you'd only get around 6.5% annualized growth, so QYLD if netting 10% annual over the same 20 year would have vastly outperformed the S&P500, even with 0% asset price appreciation in QYLD [dividends would need to be reinvested]. If you consider tax as a negative, people might be investing with a ROTH IRA, which doesn't have a tax burden on the distributions.
Im not sure I've heard of qylg. I thought since inception would be the best was to judge qyld.
Its an awesome ETF, but not one you want to invest all your money into. Add 10% of it to your portfolio and invest in other companies you know well and believe in.
Maybe it’s just me but I think he’s secretly in love with this stock. If there’s a third video made, I can say I called it!
Dividend reinvestment etf is better when it maintains price so the reinvestment can maximize, unless you got a f*** ton of money it's different, 10k invested for 10 years can give a generous return compared to most. Problem isn't the growth but how the tax works, but there's always a work around. If you know how to work it, it's good regardless of age.
I really liked that you included tax information. I had watched several videos and they just talked about yield and what the eft was. You gave more info. Thanks
So do you get a K-1 form since it is return of capital
I like the opposing opinions you’ve made compared to other videos praising QYLD, BUT....I just want to say that green light in the background is pretty fucking cool 🤣
Thanks man, but these lights keep burning out and need to find a better brand👍
Wouldn't a 50/50 split between a Nasdaq index and this perform better in a down/sideways market?
Most important ist at what price you get it. I sold CSP on it an got it cheap, so now I continue to earn on both sides: dividends and commission on CSP. If you think you can get better performance on other deals, fine. Just then maybe this ETF is simply not for you. Just if it would be in future, maybe think about building a position other than with buying in directly.
Interesting video and analysis! I am long on QYLD
Is covered call option considered safe strategy to get income?
Yes I think so. Tasty trade talks about 30 delta is the safest and qyld sells atm. But I think that you should not sell cc's on stocks you want hold for a long time.
A little shortsighted on the one size fits all approach. This fund is great along with other dividend ETFs like SCHD and NOBL for those seeking dividend income instead or growth, like a retiree
Thanks for making this video, and explaining about the company. I have shares because of the dividends.
Lets say that after 10 years your cost basis is zero, and you liquidate. Would you pay capital gains tax on the entire amount of the sale income?
Yes that sounds right
Good analysis ... thanks for the video
Is it safe investment for long term with 11% yield?
No I don't think so. First the share price tends to drop over time and then if volatility drops you won't be getting the 11%. It can keep paying out high yield but I don't think is is safe or reliable as people say.
Put a trailing stop loss order at 10 -15% if you're worried. Problem solved.
What do you guys think this etf is going to perform in a bear market?
It will continue to make payouts but the share price will fall some.
bro.. if you S&P 500 everything, just put your $$ to S&P
I agree, covered calls aren't my thing either.
Do QYLD still pays dividends to this day? I was doing research and i haven't seen a payout date since jan, 7, 2021....someone please reply with an accurate answer
They still are
What is your opinion on JEPI?
I don't really know much about it.
I don’t think u really understand how etf’s work. Please go review before bs-ing on UA-cam lol. I guess when you don’t understand something it sounds complicated. There is a AP behind every transaction on buying and selling shares/cc. The price has of QYLD has to do with how much the demand for the NASDAQ is. Not how much QYLD is demanded. If demand of QYLD is high the ap will just buy more nasdaq and issue more QYLD shares to offset the imbalanced price and vise versa.
Dude doesn't know what he is talking about.
Need more visuals for the explanation. Product does look sketchy.
BOA expects 0% growth over next 10 years just announced. This is great for qyld because they it will outperform your growth etfs. People should take into consideration what the banks forecast like you u tubers
Look at jepi etf look nice so far
I don't know much about jepi, but ill look at it.
Look at NUSI too
QYLD is great, it's designed for Income investors. Your analysis sucked
LOL. I was going to tell em the same thing - exactly!
Lol you guys soft . Lmao I wouldn’t buy crappy qyld .
I love QYLD
I agree. Not for me either. I make way more money running the wheel myself, plus it's fun!
Yea I think doing it manually works better too.
Yeah gamify the 💰
Love qyld
The hilarious thing is that you are absolutely correct but got so many down votes. People are so obsessed with dividends that they will literally take away capital appreciation.
You could have explained it better or charted it better to show people but I mean if people can't figure this out they deserve what they get. This is why people underperform, basic math is hard for them
The hilarious thing is you are absolutely blind! Every investor has their own goals. Not every investor needs capital appreciation. At some point in time, an investor may prefer to move money from “growth” to “income”. I have held TQQQ for 8 years. I’ve had incredible growth. Now, I’m ready to redirect some of that appreciation from growth to income. Sure, I’ll keep some TQQQ. Most of it, actually. But, moving some from TQQQ to QYLD lets me stabilize my portfolio (ie. not “lose” it!) as well as enjoy some income.
Is QYLD a good way to grow a portfolio? It’s not “bad” but there are better ways. Is it a good way to fund a retirement? ABSOLUTELY!!!
@@adairmartin make what ever mistake you want. If you think you know how qyld works great. I LOVE qyld. It alows me to make more money than I should because people don't know how it works. So please, buy qyld. I DEPEND on people like you to create incredible growth for clients.
Please, go buy qyld. Like I said, you don't understand how it works? Great, you DESERVE WHAT YOU GET. Finance and trading is meant to move money to the smartest hands. It depends on people making mistakes and being intellectually stupid. So thanks.
@@Tential1 what makes you think I don’t know how it works? The fund buys all the stocks in the Index. About 100 positions. It then sells at the money calls on the QQQ index that expire at the end of the month. These calls are cash settled. If the market is flat or down, the fund gets to keep the premium. If the market is up, the fund has to pay some to cover the call. On average, the fund has been generating about 1% per month.
Over the past 7 years, the NAV of the fund has dropped from about $25/unit to about $22.50. That’s a 10% decline. Over 7 years. It’s unfortunate, but what can you do. The market has been up! To offset that, it’s good to hold some growth stocks or ETFs that can be added to the QYLD position to maintain the cash flow, Alternatively, some of the dividends of QYLD can be reinvested to offset the long term NAV decline.
I’m not sure I understand how my investing in QYLD makes YOU any money. Please let me know how that works!
And, for what it’s worth, I’m hardly a stupid investor. I’m 67 and retired 20 years ago, living on my passive investments. I am NOT a registered investment advisor, just an ordinary guy who has been investing in stocks since I was in college.
@@adairmartin that's a no then. Hence why I love this game. It's so complex, and people can regurgitate only the basics.
Enjoy your game play. If you're happy, I'm happy. Not in my best interest to explain to you. This is a game, and the best way to get people to use qyld is to tell them not to. People are dumb. I can tell you this, and you'll still double down on you being right. You'll tell your friends hopefully about qyld being good. And that, will make me happy.
@@Tential1, I don’t understand your post at all. You’re playing some kind of mind games???
Do you do this with clients? You imply you are a financial advisor. If this is the way you treat them, I’m amazed they stay with you.
I prefer to keep it simple: use growth stocks
Or ETF’s to grow the portfolio. At such time the portfolio has grown, use dividend stocks and/or ETFs for passive income.
Taxed as income...Dude
Also dude it doesnt look like anyone on this comment board agrees with you at all...My summation of this is your incorrect in the way you look at it
No they don't agree with me at all.
@@PointsInbound You might like Qylg it has 50 percent growth and 50 percent income. Chart is impressive
Oh that sounds cool. I'll look at it. 👍
Hello everyone, I have posted a question over here but for some reason its not showing. Thereby asking again: i saw a couple of youtube vide and reviews of QYLD and everyone just stating that this is not a good stock as the growth is not a sure shot. I am not an expert neither i have experience in investment but I believe in this group there are many seasoned players who have done so much in investment. my question is i have invested a fair amount of money on this for monthly income along with a mindset to invest that monthly income in an Index fund on a monthly basis. Am I on the right track? kindly share if you have any more thoughts on this.
Yes I bought a few shares of this and nusi Will be selling both as soon as I break even
Nice
Totally disagree, delete the video please
screw this ETF, id rather choose my own delta and take control of my own yield
Yea me too.
I love QYLD